Labor law in Switzerland

The employment contract

In Switzerland, the employment contract can be concluded orally, but a written contract is strongly recommended. The law mainly distinguishes between the permanent contract (CDI), which is the norm, and the fixed-term contract (CDD), used for one-off missions.

The fixed-term contract ends automatically on the agreed date, without the need for termination. If it is tacitly extended, it transforms into a permanent contract. Successive fixed-term contracts (chain fixed-term contracts) are not prohibited per se, but can be reclassified as permanent contracts if the employer seeks to circumvent legal protections.

Trial period

The trial period is set at one month by default, but can be extended to a maximum of three months by written agreement. During this period, the termination period is 7 days for each party. The trial period cannot be renewed, but it is extended in the event of absence due to illness, accident or fulfillment of a legal obligation.

Working time and overtime

The maximum working time is 45 hours per week for industrial employees, office staff and commercial employees, and 50 hours for other categories. In practice, most contracts provide for between 40 and 42 hours per week.

Overtime must be paid with a 25% supplement or compensated by equivalent leave. The contract may provide that overtime is included in the salary, but this clause must be clear and the volume reasonable.

Vacations and leave

The legal minimum is 4 weeks of vacation per year (5 weeks for those under 20). Many companies allow 5 weeks, or even more for executives. Public holidays vary depending on the canton (8 to 15 days per year).

• • Maternity leave: 14 weeks paid at 80% of salary (max. CHF 220 per day), financed by the APG
• • Paternity leave: 2 weeks (10 days) paid at 80%, to be taken within 6 months following the birth
• • Leave to care for a loved one: 3 days per event, 10 days per year maximum
• • Marriage leave: 1 to 2 days (use, not provided for by law)
• • Bereavement leave: 1 to 3 days depending on the degree of relationship (use)

Dismissal and protection

Dismissal in Switzerland is relatively free: the employer does not need to give reasons for its decision, except in the case of unfair dismissal. The dismissal is unfair if it is based on a discriminatory reason (sex, religion, sexual orientation), if it is a retaliatory measure or if it aims to prevent the emergence of a legal claim.

Protection against dismissal

Certain periods are protected: the employer cannot dismiss an employee during military service, illness (30 to 180 days depending on seniority), pregnancy and the 16 weeks following childbirth, or a humanitarian aid mission. A dismissal served during these periods is void.

Employment-related social insurance

• • AVS/AI/APG (1st pillar): equal contribution of 5.3% each (employee and employer)
• • LPP (2nd pillar): shared contribution, employer share at least 50%
• • Unemployment insurance (AC): 1.1% each up to CHF 148,200
• • LAA (accident insurance): professional accidents paid by the employer, non-professional accidents by the employee
• • Family allowances: funded by the employer, CHF 200 to CHF 380 per child depending on the canton

Harassment and mobbing

The employer has a legal obligation to protect the personality of its employees (art. 328 CO). Mobbing and sexual harassment are prohibited. In the event of a breach, the employee may demand corrective measures, request compensation of up to 6 months' salary (sexual harassment) or terminate the contract with immediate effect for just cause.